M&A framework regulation strengthening in Vietnam 09:00 | 08/05/2021
Vietnam is well on its way to developing a vibrant and sophisticated mergers and acquisitions market which is capable of competing with the markets of leading jurisdictions worldwide. Justin Gisz, partner from Frasers Law Company, shares his point of view on recent developments and how the legal framework performs in reality.
Justin Gisz, partner from Frasers Law Company
Remarkable progress has been made in facilitating international-standard merger and acquisition (M&A) transactions in Vietnam during the last 20 years and the rate of progress has also accelerated markedly during the last decade.
The legal framework which underpins M&A transactions in Vietnam has become increasingly clear, robust, and effective, particularly since 2015.
Phat Dat settles $22.5 million foreign loan 14:34 | 10/05/2021
Ho Chi Minh City-based developer Phat Dat has demonstrated its high commitment and strong financial stead with the prompt settlement of $22.5 million foreign loans.
The timely settlement of the loan reflects Phat Dat s prestige and commitment to domestic and foreign investors
The announcement on May 4Â by Phat Dat Real Estate Development Corporation (HSX: PDR) follows the companyâs impressive business results in the first quarter, especially the early redemption of all bonds issued in 2019.
Phat Dat took out a loan of $22.5 million in April 2019 from Samty Asia Investment Pte., Ltd., a subsidiary of Samty Corporation and a Japanese leading real estate enterprise via Vietnam New Urban Centre LP Fund. The capital was used to finance the companyâs projects, especially those in Ho Chi Minh City.
A global perspective of Vietnamese equity market 10:00 | 06/05/2021
Kojima Kazunobu Daiwa Institute of Research (left), Sakakabara Takashi Japan Vietnam Economic Forum
In particular, the high proportion banks (FOL: 30 per cent) and former state-owned enterprises contributing to the total equity market capitalisation is possibly one of the reasons why FOL is evaluated as a serious obstacle for Vietnam. For foreign investors, technical obstacles such as the language of information, accounting standards, and market inefficiencies can be overcome but holding restrictions is a more fundamental issue.
We see some improvements in the new laws on securities, investment, and enterprises, such as a reduction in the number of industries with a statutory FOL and the provision of a non-voting depositary receipt that allows foreigners to have all shareholder rights other than voting rights without holding underlying shares.
Questions over air titansâ funding plans 11:49 | 04/05/2021
Airlines are looking at new ways to raise funds after a terrible situation for aviation in 2020
According to Pham The Anh, chief economist at the Vietnam Institute for Economic and Policy Research, airlines plan fundraising on the stock market as favourable conditions in the stock market are in reach. This may therefore be a good solution for them to access more financial sources for operations amid the pandemic. However, many experts warn that it will not be easy for air carriers to mobilise tens of trillions of VND in the stock market at this time because their tickers are simply less attractive than others.